A new promotional white paper from Reuters Events, entitled The Future of AI in Insurance, looks at the opportunities and challenges associated with generative artificial intelligence (AI) and how some insurance companies are investing.
Calling generative AI “the cornerstone of innovation in the insurance industry,” the white paper’s authors assert that AI has the potential to help insurers make efficiency gains, spread their investment risk, enhance the stability of their portfolios and create new product offerings. “AI in insurance is not a future concept, but a present-day necessity,” they write. “AI and other associated technologies such as machine learning, stand to be transformative for insurers.”
A deeper role to play in business operations
In promoting the services of the white paper’s co-authors, Clearwater Analytics, they add that organizations not planning to use generative AI at all are outliers. “What may now be a competitive advantage could soon become a necessity to stay relevant,” they write. “Insurance professionals tend to expect greater increases in generative AI investments than other sectors. Insurance organizations could, therefore, regard generative AI as having a deeper role to play in business operations – claims being the most mentioned department for generative AI implementation.”
Citing surveys conducted by Reuters, they say 80 per cent of respondents said their organization uses generative AI or plans to within 12 months; 84 per cent said they expected their investments related to generative AI to increase. When asked to name the specific vendors they were working with or planning to work with, Microsoft and OpenAI were the two most popular responses, followed by Google and AWS.
